Based on the Sustainability Accounting Standards Board's (SASB) materiality map, which of the following is a material ESG risk for healthcare…

According to the Sustainability Accounting Standards Board (SASB) materiality map, certain ESG

issues are deemed material for specific industries. For healthcare companies, customer welfare is a

significant material ESG risk. This includes aspects such as patient safety, quality of care, access to

healthcare, and patient privacy. These factors are critical in the healthcare sector due to the direct

impact on patients' well-being and regulatory scrutiny.

Customer welfare (A): This is a core material issue for healthcare companies as it directly impacts

patient safety and quality of care, which are critical aspects of healthcare services.

Competitive behavior (B): While competitive behavior can be material in many industries, it is not

the primary material ESG risk for healthcare companies according to SASB's materiality map.

Greenhouse gas (GHG) emissions (C): GHG emissions are more material for industries with significant

energy consumption and environmental impact, such as utilities and manufacturing. While

healthcare companies do have environmental impacts, customer welfare is more directly relevant to

their core operations.

Reference:

Sustainability Accounting Standards Board (SASB) Materiality Map

CFA ESG Investing Principles

======